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Become a Better Investor Newsletter – 20 April 2024

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Noteworthy this week

  • The bond trade hasn’t played out
  • S&P 500 is down in terms of gold
  • Manager allocates 70% of its AUM to cash
  • Bitcoin is 3x-levered NASDAQ
  • Fast food outpaces inflation

The bond trade hasn’t played out: In December 2023, BofA published its Global Fund Manager Survey, showing that fund managers were the most bullish on rates since they started asking the question 20 years ago. The Bloomberg Global Aggregate Bond Index is down 4% 2024YTD.

S&P 500 is down in terms of gold: The S&P 500’s price performance over the past five years in terms of gold is down slightly. Assuming gold is a store of value, this would be a reasonable way to look at it.

Manager allocates 70% of its AUM to cash: The UK-based asset manager, Ruffer LLP, is now allocating an all-time high two-thirds of its AUM to cash in preparation for a 1987-style market meltdown that could occur in the next three months. What do you think about this move?

Bitcoin is 3x-levered NASDAQ: An interesting take is that Bitcoin is essentially the same thing as triple-levered NASDAQ.

Fast food outpaces inflation: Price inflation at fast food restaurants in the US has far exceeded CPI inflation since 2014. Why do people still eat it? Another question is whether CPI accurately measures inflation.

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Weekly market performance

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Chart of the week

Discussed in the Become a Better Investor Community this week

“We have uploaded the new picks for our China A strategy.

We have also updated our FVMR Global strategy.”

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Podcasts we listened to this week

The Memo by Howard Marks – The Indispensability of Risk

“In his latest memo, Howard Marks considers what chess can teach investors about the paradox of risk-taking. Drawing on insights from a recent Wall Street Journal article by chess grandmaster Maurice Ashley, Howard explains why not taking enough risk may be one of the riskiest strategies of all.”

Listen to the episode

Readings this week

IT’S. ABOUT. THE. MONEY.

“This is the essential truth of the world-as-it-is, certainly the business world-as-it-is, whenever money is involved in even the most minor respect. IT’S. ABOUT. THE. MONEY. That’s it. That’s the line. It’s always about The Money.”

Read article

Book recommendation

The Socrates Express: In Search of Life Lessons from Dead Philosophers by Eric Weiner

“We turn to philosophy for the same reasons we travel: to see the world from a dif­ferent perspective, to unearth hidden beauty, and to find new ways of being. We want to learn how to embrace wonder. Face regrets. Sustain hope.”

Get the book on Audible or Kindle.

Audible is great; have you tried it? If not, click here to get 2 books for free.

Memes of the week

New My Worst Investment Ever episodes

Ep781: Vivek Raina – Nobody Can Beat You at What You’re Good At

BIO: Vivek Raina is a seasoned veteran with over two decades of experience in the broadband industry. As the CEO and Co-Founder of Excitel, he leads the mission to connect BHARAT, propelling the company to the top three ISPs in India—a remarkable feat in just eight years.

STORY: Vivek spent 10 years finding an investor to fund his business idea. He wishes he had spent these years advancing his corporate career.

LEARNING: Working for somebody is fragile. Every failure teaches you something and makes you a better version of yourself. Do something you’re passionate about.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

Do you struggle to meet your goals or targets? Find out how you can change your thinking about goals and your process for setting them so you can keep moving forward. In this episode, John Dues and host Andrew Stotz discuss the first five of John’s 10 Key Lessons for Data Analysis.

Listen to Goal Setting Is Often An Act of Desperation: Part 2

Sinopharm Group Company Limited (1099 HK): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 380 large Health Care companies worldwide.

Read Sinopharm Group – World Class Benchmarking

Prada SpA (1913 HK): Profitable Growth rank of 2 was up compared to the prior period’s 4th rank. This is World Class performance compared to 880 large Cons. Disc. companies worldwide.

Read Prada SpA – World Class Benchmarking

Burberry Group PLC (BRBY LN): Profitable Growth rank of 2 was same compared to the prior period’s 2nd rank. This is World Class performance compared to 880 large Cons. Disc. companies worldwide.

Read Burberry Group – World Class Benchmarking

Kering SA (KER FP): Profitable Growth rank of 3 was down compared to the prior period’s 2nd rank. This is above average performance compared to 880 large Cons. Disc. companies worldwide.

Read Kering SA – World Class Benchmarking

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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